Latest news with #RandCapitalCorporation
Business Wire
4 days ago
- Business
- Business Wire
Rand Capital Announces Second Quarter 2025 Financial Results Conference Call and Webcast
BUFFALO, N.Y.--(BUSINESS WIRE)-- Rand Capital Corporation (Nasdaq: RAND) ('Rand' or the 'Company'), a business development company providing alternative financing for lower middle market companies, announced that it plans to release its second quarter 2025 financial results before the opening of financial markets on Monday, August 4, 2025. The Company will also host a conference call and webcast to review its results that day. Second Quarter 2025 Conference Call 1:30 p.m. Eastern Time Phone: (201) 689-8263 Webcast: A telephonic replay will be available from 5:30 p.m. ET on the day of the call through Monday, August 18, 2025. To listen to the archived call, dial (412) 317-6671 and enter replay PIN 13754384. The webcast replay will be available in the investors' section at where a transcript will also be posted once available. ABOUT RAND CAPITAL Rand Capital Corporation (Nasdaq: RAND) is an externally managed business development company (BDC). The Company's investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand primarily invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company's investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company's website where it regularly posts information:
Yahoo
05-05-2025
- Business
- Yahoo
Rand Capital Reports Increase in Net Investment Income for First Quarter 2025
Total investment income was $2.0 million, a 3% decrease from the prior-year period, primarily due to the repayment of three debt instruments, partially offset by higher fee income Total expenses declined 36% year-over-year, reflecting lower interest expense from reduced debt levels and a capital gains incentive fee adjustment Net investment income grew 45% to $1.2 million, or $0.42 per share Net asset value per share ("NAV") was $21.99 compared with $25.31 at year-end 2024; reflecting the issuance of additional shares as part of the 2024 fourth quarter dividend Repaid revolver debt during the quarter; ended the first quarter of 2025 with over $22 million in available credit capacity and $4.9 million in cash Realized gain of $925,000 during the quarter from portfolio redemptions Declared quarterly dividend of $0.29 per share for second quarter 2025 BUFFALO, N.Y., May 05, 2025--(BUSINESS WIRE)--Rand Capital Corporation (Nasdaq: RAND) ("Rand" or the "Company"), a business development company providing alternative financing for lower middle market companies, announced its results for the first quarter ended March 31, 2025. "Our first quarter results reflect the strength of our operating model, disciplined expense management, including reduced interest expense due to lower debt, and a solid foundation for continued execution," said Daniel P. Penberthy, President and Chief Executive Officer of Rand. "We delivered a 45% increase in net investment income over the prior year-period, despite a modest decline in total investment income due to the early repayment of three debt instruments. At the same time, we continued to closely monitor the ongoing macroeconomic and operational challenges that some of our portfolio companies are navigating. While we are well positioned to execute our strategy, we are also seeing a slowdown in new investment opportunities, influenced by broader economic and political uncertainties. We remain optimistic that these conditions will improve in the coming quarters. In the meantime, our strong balance sheet, with nearly $5 million in cash and over $22 million in available credit capacity, ensures we are prepared to capitalize when the environment becomes more favorable. We believe these conditions may ultimately lead to stronger longer-term outcomes." First Quarter Highlights (compared with the prior-year period unless otherwise noted) Total investment income of $2.0 million decreased $59,000, or 3%, which reflected lower dividend income combined with an 8% reduction of interest income from portfolio companies given the repayment of three debt instruments during the first quarter. Partially offsetting was an increase in non-recurring fee income, which represented 15% of total investment income in the first quarter of 2025 compared with 5% in the prior-year period. Total expenses decreased 36% to $791,000 compared with $1.2 million in the same period last year. The decline was primarily driven by a $354,000 reduction in interest expense due to lower outstanding debt levels. In addition, management fees contributed to the year-over-year improvement, including a $75,000 capital gains incentive fee credit in the recent period versus a $112,000 expense in the first quarter of 2024, and a $50,000 reduction in base management fees following portfolio company principal repayments. These benefits were partially offset by the accrual of a $120,000 income-based incentive fee in the first quarter of 2025, reflecting improved operating performance and fund profitability, while no such fee was incurred in the prior-year period. Adjusted expenses, which exclude capital gains incentive fees, and is a non-GAAP financial measure, were $866,000 compared with $1.1 million in the first quarter of 2024. See the attached description of this non-GAAP financial measure and reconciliation table for adjusted expenses. Net investment income increased 45% to $1.2 million, or $0.42 per share, compared with $840,000, or $0.33 per share, in the first quarter of 2024. Adjusted net investment income per share, a non-GAAP financial measure, which excludes the capital gains incentive fee accrual expense, was $0.40 per share, up 8% from $0.37 per share in last year's first quarter. The first quarter of 2025 per share amounts were computed using 2,869,339 weighted average shares outstanding, reflecting a higher number of shares outstanding following the fourth quarter 2024 dividend that was paid in part using shares of common stock, as compared with 2,581,021 weighted average shares outstanding for the first quarter of 2024. See the attached description of this non-GAAP financial measure and reconciliation table for adjusted net investment income per share. Portfolio and Investment Activity As of March 31, 2025, Rand's portfolio included investments with a fair value of $62.2 million across 19 portfolio businesses. This was a decrease of $8.7 million, or 12%, from December 31, 2024, primarily due to loan repayments. The portfolio was comprised of approximately 72% debt investments and 28% equity investments at March 31, 2025. The annualized weighted average yield of debt investments, which includes PIK interest, was 12.2% at March 31, 2025, compared with 13.8% at the end of 2024. First Quarter 2025: Funded a follow-on debt investment of $375,000 in ITA Acquisition, LLC. Rand's total debt and equity investment in ITA had a fair value of $2.0 million at quarter-end. Exited investment in Mattison Avenue Holdings LLC, receiving full repayment of a $5.6 million debt instrument. Exited investment in Pressure Pro, Inc., receiving full repayment of a $1.7 million debt instrument. As part of the exit, Rand sold its warrants, generating a realized gain of $870,000. Exited investment in HDI Acquisition LLC, receiving full repayment of a $1.1 million debt instrument. Liquidity and Capital Resources Rand ended the quarter with $4.9 million in cash, up from $835,000 at year-end 2024. The Company fully repaid its outstanding borrowings of $600,000 on its senior secured revolving credit facility, resulting in no debt outstanding thereunder as of March 31, 2025. The Company did not repurchase any outstanding common stock during the first quarter of 2025. Rand's Board of Directors renewed the share repurchase program authorizing the purchase of up to $1.5 million in additional Rand common stock. The shares may be repurchased from time to time in the open market and in accordance with applicable regulations of the Securities and Exchange Commission. The stock repurchase program does not obligate the Company to purchase any shares, and the timing and exact amount of any repurchases will depend on various factors, including the performance of the Company's stock price, general market and other conditions, applicable legal requirements and other factors. The renewed stock repurchase program expires on April 23, 2026, and may be suspended, terminated or amended by the Board at any time prior to the expiration date. Dividends On March 3, 2025, Rand declared its regular quarterly cash dividend of $0.29 per share, which was paid during the first quarter to shareholders of record as of March 14, 2025. While the regular per share dividend was unchanged, the total dollar amount of the distribution increased due to the approximately 389,000 shares issued in January 2025 as part of the fourth quarter 2024 dividend. On April 30, 2025, Rand declared its regular quarterly cash dividend of $0.29 per share, payable on or about June 13, 2025, to shareholders of record as of May 30, 2025. Webcast and Conference Call Rand will host a conference call and webcast on Monday, May 5, 2025, at 1:30 p.m. Eastern Time, to review its financial results. The review will be accompanied by a slide presentation, which will be available on Rand's website at in the "Investor Relations" section. Rand's conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored on Rand's website at under "Investors" where the replay will also be available. A telephonic replay will be available from 5:30 p.m. ET on the day of the call through Monday, May 19, 2025. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13752618. A transcript of the call will also be posted once available. ABOUT RAND CAPITAL Rand Capital Corporation (Nasdaq: RAND) is an externally managed business development company (BDC). The Company's investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand primarily invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company's investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company's website where it regularly posts information: Safe Harbor Statement This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the strategy of the Company and its outlook; statements regarding the implementation of the Company's strategy and the growth of its dividend; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time to time in Rand's reports filed with the Securities and Exchange Commission ("SEC"), including Rand's annual report on Form 10-K for the year ended December 31, 2024, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand's current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this release. FINANCIAL TABLES FOLLOW Rand Capital Corporation and Subsidiaries Consolidated Statements of Financial Position March 31,2025(Unaudited) December 31,2024 ASSETS Investments at fair value: Control investments (cost of $6,563,940 and $6,188,940, respectively) $ 2,000,000 $ 2,500,000 Affiliate investments (cost of $44,450,751 and $42,488,804, respectively) 52,490,162 51,668,144 Non-Control/Non-Affiliate investments (cost of $9,743,250 and $19,442,491, respectively) 7,667,201 16,649,897 Total investments, at fair value (cost of $60,757,941 and $68,120,235, respectively) 62,157,363 70,818,041 Cash 4,933,269 834,805 Interest receivable (net of allowance of $25,337 and $0, respectively) 223,273 357,530 Prepaid income taxes 339,237 329,365 Deferred tax asset, net 4,886 2,161 Other assets 163,402 115,531 Total assets $ 67,821,430 $ 72,457,433 LIABILITIES AND STOCKHOLDERS' EQUITY (NET ASSETS) Liabilities: Due to investment adviser $ 545,838 $ 2,182,846 Accounts payable and accrued expenses 45,676 92,568 Line of credit — 600,000 Capital gains incentive fees 1,490,000 1,565,000 Deferred revenue 428,663 516,441 Dividend payable — 2,168,058 Total liabilities 2,510,177 7,124,913 Stockholders' equity (net assets): Common stock, $0.10 par; shares authorized 100,000,000; shares issued: 3,037,709 at 3/31/25 and 2,648,916 at 12/31/24; shares outstanding: 2,969,814 at 3/31/25 and 2,581,021 at 12/31/24 303,771 264,892 Capital in excess of par value 64,051,504 55,419,620 Stock dividends distributable: 0 shares at 3/31/25 and 388,793 shares at 12/31/24 — 8,672,231 Treasury stock, at cost: 67,895 shares at 3/31/25 and 12/31/24 (1,566,605 ) (1,566,605 ) Total distributable earnings 2,522,583 2,542,382 Total stockholders' equity (net assets) (per share – 3/31/25: $21.99; 12/31/24: $25.31) 65,311,253 65,332,520 Total liabilities and stockholders' equity (net assets) $ 67,821,430 $ 72,457,433 Rand Capital Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited) Three months endedMarch 31, 2025 Three months endedMarch 31, 2024 Investment income: Interest from portfolio companies: Control investments $ — $ 187,483 Affiliate investments 1,282,859 1,166,085 Non-Control/Non-Affiliate investments 394,307 460,080 Total interest from portfolio companies 1,677,166 1,813,648 Interest from other investments: Non-Control/Non-Affiliate investments 10,383 1,914 Total interest from other investments 10,383 1,914 Dividend and other investment income: Affiliate investments 13,125 13,125 Non-Control/Non-Affiliate investments — 138,710 Total dividend and other investment income 13,125 151,835 Fee income: Control investments 4,516 4,516 Affiliate investments 131,755 73,720 Non-Control/Non-Affiliate investments 170,959 21,586 Total fee income 307,230 99,822 Total investment income 2,007,904 2,067,219 Expenses: Base management fee 252,208 302,595 Income based incentive fees 119,673 — Capital gains incentive fees (75,000 ) 112,300 Interest expense 36,486 390,020 Professional fees 208,842 232,307 Stockholders and office operating 90,763 69,028 Directors' fees 63,850 63,850 Administrative fees 48,750 38,167 Insurance 13,162 13,044 Corporate development 6,994 5,545 Bad debt expense 25,337 — Total expenses 791,065 1,226,856 Net investment income before income taxes: 1,216,839 840,363 Income tax (benefit) expense (1,276 ) 778 Net investment income 1,218,115 839,585 Net realized gain on sales and dispositions of investments: Affiliate investments 925,357 — Non-Control/Non-Affiliate investments (25 ) 3,450,092 Net realized gain on sales and dispositions of investments 925,332 3,450,092 Net change in unrealized appreciation/depreciation on investments: Control investments (875,000 ) — Affiliate investments (423,384 ) (100,000 ) Non-Control/Non-Affiliate investments — (2,790,296 ) Change in unrealized appreciation/depreciation before income taxes (1,298,384 ) (2,890,296 ) Deferred income tax expense 3,616 — Net change in unrealized appreciation/depreciation on investments (1,302,000 ) (2,890,296 ) Net realized and unrealized (loss) gain on investments (376,668 ) 559,796 Net increase in net assets from operations $ 841,447 $ 1,399,381 Weighted average shares outstanding 2,869,339 2,581,021 Basic and diluted net increase in net assets from operations per share $ 0.29 $ 0.54 Rand Capital Corporation and Subsidiaries Consolidated Statements of Changes in Net Assets (Unaudited) Three months endedMarch 31, 2025 Three months endedMarch 31, 2024 Net assets at beginning of period $ 65,332,520 $ 60,815,213 Net investment income 1,218,115 839,585 Net realized gain on sales and dispositions of investments 925,332 3,450,092 Net change in unrealized appreciation/depreciation on investments (1,302,000 ) (2,890,296 ) Net increase in net assets from operations 841,447 1,399,381 Declaration of dividend (862,714 ) (645,255 ) Net assets at end of period $ 65,311,253 $ 61,569,339 Rand Capital Corporation and Subsidiaries Reconciliation of GAAP Total Expense to Non-GAAP Adjusted Expenses (Unaudited) In addition to reporting total expenses, which is a U.S. generally accepted accounting principle ("GAAP") financial measure, Rand presents adjusted expenses, which is a non-GAAP financial measure. Adjusted expenses is defined as GAAP total expenses removing the effect of any (credits)/expenses for capital gains incentive fees accrual. GAAP total expenses is the most directly comparable GAAP financial measure. Rand believes that adjusted expenses provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Three months endedMarch 31, 2025 Three months endedMarch 31, 2024 Total expenses $ 791,065 $ 1,226,856 Exclude (credits)/expenses for capital gains incentive fees (75,000 ) 112,300 Adjusted total expenses $ 866,065 $ 1,114,556 Reconciliation of GAAP Net Investment Income per Share to Adjusted Net Investment Income per Share (Unaudited) In addition to reporting Net Investment Income per Share, which is a GAAP financial measure, the Company presents Adjusted Net Investment Income per Share, which is a non-GAAP financial measure. Adjusted Net Investment Income per Share is defined as GAAP Net Investment Income per Share removing the effect of any (credits)/expenses for capital gains incentive fees. GAAP Net Investment Income per Share is the most directly comparable GAAP financial measure. Rand believes that Adjusted Net Investment Income per Share provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with first quarter 2025 per share amounts were computed using 2,869,339 weighted average shares outstanding, reflecting a higher number of shares outstanding following the fourth quarter 2024 dividend that was paid in part using shares of common stock, as compared with 2,581,021 weighted average shares outstanding for the first quarter of 2024. Three months endedMarch 31, 2025 Three months endedMarch 31, 2024 Net investment income per share $ 0.42 $ 0.33 Exclude (credits)/expenses for capital gains incentive fees per share (0.02 ) 0.04 Adjusted net investment income per share $ 0.40 $ 0.37 View source version on Contacts Company: Daniel P. PenberthyPresident and CEO716.853.0802dpenberthy@ Investors: Deborah K. Pawlowski / Craig P. MychajlukAlliance Advisors IR716-843-3908 / 716-843-3832dpawlowski@ cmychajluk@ Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Rand Capital Announces $0.29 per Share Cash Dividend for Second Quarter 2025
BUFFALO, N.Y., April 30, 2025--(BUSINESS WIRE)--Rand Capital Corporation (Nasdaq: RAND) ("Rand" or the "Company"), a business development company providing alternative financing for lower middle market companies, announced today that its Board of Directors declared a quarterly cash dividend of $0.29 per share. The cash dividend will be distributed on or about June 13, 2025, to shareholders of record as of May 30, 2025. Rand has approximately 3 million shares outstanding. Additional Information Regarding Dividend Distributions The amount and timing of dividend distributions, including future dividend distributions, are subject to the discretion of Rand's Board of Directors. When declaring distributions, Rand's Board of Directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year. ABOUT RAND CAPITAL Rand Capital Corporation (Nasdaq: RAND) is an externally managed business development company (BDC). The Company's investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand primarily invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company's investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company's website where it regularly posts information: View source version on Contacts Company: Daniel P. PenberthyPresident and CEO716.853.0802dpenberthy@ Investors: Deborah K. Pawlowski / Craig P. MychajlukAlliance Advisors IR716-843-3908 / 716-843-3832dpawlowski@ / cmychajluk@ Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
Rand Capital Announces First Quarter 2025 Financial Results Conference Call and Webcast
BUFFALO, N.Y., April 22, 2025--(BUSINESS WIRE)--Rand Capital Corporation (Nasdaq: RAND) ("Rand" or the "Company"), a business development company providing alternative financing for lower middle market companies, announced that it plans to release its first quarter 2025 financial results before the opening of financial markets on Monday, May 5, 2025. The Company will also host a conference call and webcast to review its results that day. First Quarter 2025 Conference Call Monday, May 5, 20251:30 p.m. Eastern TimePhone: (201) 689-8263Webcast: A telephonic replay will be available from 5:30 p.m. ET on the day of the call through Monday, May 19, 2025. To listen to the archived call, dial (412) 317-6671 and enter replay PIN 13752618. The webcast replay will be available in the investors' section at where a transcript will also be posted once available. ABOUT RAND CAPITAL Rand Capital Corporation (Nasdaq: RAND) is an externally managed business development company (BDC). The Company's investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand primarily invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company's investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company's website where it regularly posts information: View source version on Contacts Company: Daniel P. PenberthyPresident and CEO716.853.0802dpenberthy@ Investors: Deborah K. Pawlowski / Craig P. MychajlukAlliance Advisors IR716-843-3908 / 716-843-3832dpawlowski@ cmychajluk@ Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
Rand Capital Reports Strong 2024 Results with 17% Investment Income Growth, Increased Dividends, and Continued Strategic Debt Investments
Total investment income rose 11% to $2.1 million for the fourth quarter and was up 17% to $8.6 million for full year 2024, driven by growth in interest income from an expanded debt investment portfolio Debt investments now represent 75% of Rand's portfolio, up from 64% at the end of 2023, contributing to improved yields and net interest income Net asset value per share ("NAV") grew 7% year-over-year to $25.31 Outstanding bank debt reduced by $15.7 million year-over-year, with over $24 million in remaining availability at December 31, 2024 Rand raised its regular quarterly cash dividend by 16% in 2024 while increasing total dividends to $5.03 per share, including the stock and cash dividend in the fourth quarter Strategic capital deployment of nearly $14 million during the year positions Rand for continued growth in 2025 BUFFALO, N.Y., March 10, 2025--(BUSINESS WIRE)--Rand Capital Corporation (Nasdaq: RAND) ("Rand" or the "Company"), a business development company providing alternative financing for lower middle market companies, announced its results for the fourth quarter and full year ended December 31, 2024. "Rand delivered another strong quarter, highlighted by an 11% increase in total investment income over last year's fourth quarter, which contributed to a 17% rise in full-year investment income to $8.6 million. This growth was fueled by our strategic focus on expanding debt investments," commented Daniel P. Penberthy, President and Chief Executive Officer of Rand. "Throughout the year, we took proactive steps to strengthen our balance sheet and enhance liquidity, including monetizing select equity investments and exiting publicly traded securities. These actions enabled us to reduce nearly all outstanding borrowings while investing approximately $14 million in income-generating investments, further positioning us for long-term success. "In 2024, we reinforced our commitment to delivering shareholder value with a total dividend of $5.03 per share, which included the fourth quarter stock and cash dividend that was enhanced by the successful sale of a portfolio company during the year. Our 16% increase in the regular quarterly cash dividend underscores our confidence in Rand's financial strength and earnings growth potential. With a strong balance sheet and ample liquidity, we are well-positioned to sustain our disciplined growth strategy and expand investment income through new investments. While we have seen overall strengthening in many portfolio companies, we remain mindful of the challenging economic and political environment, which has impacted certain portfolio business operations." Fourth Quarter Highlights (compared with the prior-year period unless otherwise noted) Total investment income grew $207,000, or 11%, to $2.1 million, which reflected strong growth of interest income from portfolio companies given the origination of five debt instruments over the last year. Also contributing to the total investment income growth was an increase in fee income. Total expenses were a credit of $376,000 compared with an expense of $1.0 million in last year's fourth quarter. The change largely reflects a decrease in capital gains incentive fee expense, as the recent period included a credit of $1.1 million in capital gains incentive fees resulting from changes in portfolio valuations made during the quarter, compared with an expense of $64,000 for the fourth quarter of 2023. The Company also had year-over-year reduced interest expense of $276,000 given lower outstanding debt levels. Adjusted expenses, which exclude capital gains incentive fees, and is a non-GAAP financial measure, were $678,000 compared with $950,000 in the fourth quarter of 2023. See the attached description of this non-GAAP financial measure and reconciliation table for adjusted expenses. Net investment income increased to $2.2 million, or $0.86 per share, compared with $962,000, or $0.37 per share, in the fourth quarter of 2023. Adjusted net investment income per share, a non-GAAP financial measure, which excludes the capital gains incentive fee accrual expense, was $0.45 per share, up 13% from $0.40 per share in last year's fourth quarter. See the attached description of this non-GAAP financial measure and reconciliation table for adjusted net investment income per share. 2024 Highlights Total investment income of $8.6 million increased $1.2 million, or 17%, from the prior year. Total expenses were $4.8 million compared with $4.2 million in the prior year. The change largely reflected higher capital gains incentive fee expense and an increase in fees payable to the Company's external investment advisor. Excluding the capital gains incentive fee accrual, adjusted expenses, which is a non-GAAP financial measure, increased $451,000 to $3.8 million in 2024. See the attached description of this non-GAAP financial measure and reconciliation table for adjusted expenses. Net investment income per share of $1.33 for 2024 increased 15% over the $1.15 per share in the prior year. Excluding the capital gains incentive fee accrual, adjusted net investment income per share was $1.72, up 18%, from $1.46 in 2023. See the attached description of this non-GAAP financial measure and reconciliation table for adjusted net investment income per share. Net assets at December 31, 2024 were $65.3 million, up 7% from year-end 2023. Portfolio and Investment Activity As of December 31, 2024, Rand's portfolio included investments with a fair value of $70.8 million across 22 portfolio businesses. This was a decrease of $6.3 million, or 8%, from December 31, 2023, and reflected the SciAps exit, stock sales, portfolio company loan repayments and valuation adjustments in multiple portfolio companies, partially offset by new investments. At December 31, 2024, Rand's portfolio was comprised of approximately 75% in debt investments and 25% in equity investments in private companies. The annualized weighted average yield of debt investments, which includes PIK interest, was 13.8% at December 31, 2024, compared with 13.6% at the end of 2023. Fourth quarter 2024: Funded a new investment of $2.9 million in Mobile IV Nurses Management LLC, which consisted of a $2.5 million term loan at 14% plus 1% PIK, and a $375,000 equity investment. Mobile IV Nurses is a professional mobile IV hydration and vitamin therapy service. Exited investment in Nailbiter, Inc., receiving full repayment of a $2.25 million debt instrument. Received $206,000 principal loan repayment from Filterworks. Full year 2024: Invested a total of $13.9 million across six transactions, which largely consisted of interest yielding assets. Portfolio investment company SciAps, Inc. was sold during the third quarter of 2024, which resulted in the full repayment of Rand's subordinated debt and a significant equity return. In total, Rand received $13.1 million of proceeds, which included a realized gain of $7.7 million. During the year, Rand sold its remaining shares of ACV Auctions and those held in publicly traded BDCs for total proceeds of $8.2 million. Liquidity and Capital Resources Cash was $835,000 at December 31, 2024. During the fourth quarter, Rand reduced its outstanding borrowings by $3.3 million, leaving a principal balance of $600,000 on its existing $25.0 million senior secured revolving credit facility at December 31, 2024. The outstanding borrowings carried an interest rate of 8.0% at year-end. The Company did not repurchase any outstanding common stock during 2024. Dividends In 2024, Rand declared total dividends of $5.03 per share, consisting of $1.67 per share in cash dividends and a $3.36 per share stock dividend. The stock dividend was part of Rand's fourth quarter dividend of $4.20 per share, or approximately $10.8 million in the aggregate, which was declared on December 5, 2024. This dividend was paid as a combination of cash and shares of the Company's common stock to shareholders of record as of December 16, 2024. The cash portion of the fourth quarter dividend was limited to 20% of the aggregate amount, or approximately $2.2 million, excluding any cash paid for fractional shares. The remaining approximately $8.7 million was paid in stock, resulting in the issuance of 388,793 shares of common stock on January 24, 2025. Following this distribution, Rand had 2,969,814 shares outstanding. On March 3, 2025, Rand declared its regular quarterly cash dividend of $0.29 per share, payable on or about March 28, 2025, to shareholders of record as of March 14, 2025. While the regular per share dividend is unchanged, the total dollar amount of the distribution has increased due to a higher number of shares outstanding following the fourth quarter 2024 stock dividend, which was distributed in January 2025. Webcast and Conference Call Rand will host a conference call and webcast on Monday, March 10, 2025, at 1:30 p.m. Eastern Time, to review its financial results. The review will be accompanied by a slide presentation, which will be available on Rand's website at in the "Investor Relations" section. Rand's conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored on Rand's website at under "Investors" where the replay will also be available. A telephonic replay will be available from 5:30 p.m. ET on the day of the call through Monday, March 24, 2025. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13751144. A transcript of the call will also be posted once available. ABOUT RAND CAPITAL Rand Capital Corporation (Nasdaq: RAND) is an externally managed business development company (BDC). The Company's investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand primarily invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company's investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company's website where it regularly posts information: Safe Harbor Statement This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the strategy of the Company and its outlook; statements regarding the implementation of the Company's strategy and the growth of its dividend; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time to time in Rand's reports filed with the Securities and Exchange Commission ("SEC"), including Rand's annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand's current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this release. FINANCIAL TABLES FOLLOW Rand Capital Corporation and Subsidiaries Consolidated Statements of Financial Position (Audited) 2024 2023 ASSETS Investments at fair value: Control investments (cost of $6,188,940 and $5,272,770, respectively) $ 2,500,000 $ 4,148,960 Affiliate investments (cost of $42,488,804 and $45,720,974, respectively) 51,668,144 53,499,372 Non-Control/Non-Affiliate investments (cost of $19,442,491 and $17,371,862, respectively) 16,649,897 19,477,380 Total investments, at fair value (cost of $68,120,235 and $68,365,606, respectively) 70,818,041 77,125,712 Cash 834,805 3,295,321 Interest receivable 357,530 244,600 Prepaid income taxes 329,365 127,869 Deferred tax asset, net 2,161 39,179 Other assets 115,531 189,301 Total assets $ 72,457,433 $ 81,021,982 LIABILITIES AND STOCKHOLDERS' EQUITY (NET ASSETS) Liabilities: Due to investment adviser $ 2,182,846 $ 979,297 Accounts payable and accrued expenses 92,568 145,516 Line of credit 600,000 16,250,000 Capital gains incentive fees 1,565,000 2,279,700 Deferred revenue 516,441 552,256 Dividend payable 2,168,058 — Total liabilities 7,124,913 20,206,769 Stockholders' equity (net assets): Common stock, $0.10 par; shares authorized 100,000,000; shares issued: 2,648,916; shares outstanding: 2,581,021 at 12/31/24 and 12/31/23 264,892 264,892 Capital in excess of par value 55,419,620 55,801,170 Stock dividends distributable: 388,793 shares at 12/31/24 8,672,231 — Treasury stock, at cost: 67,895 shares at 12/31/24 and 12/31/23 (1,566,605 ) (1,566,605 ) Total distributable earnings 2,542,382 6,315,756 Total stockholders' equity (net assets) (per share - 2024: $25.31, 2023: $23.56) 65,332,520 60,815,213 Total liabilities and stockholders' equity (net assets) $ 72,457,433 $ 81,021,982 Rand Capital Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited) (Audited) For the Quarter EndedDecember 31, For the Year EndedDecember 31, 2024 2023 2024 2023 Investment income: Interest from portfolio companies: Control investments $ 183,239 $ 192,072 $ 733,774 $ 698,872 Affiliate investments 1,217,076 1,127,121 4,739,802 3,858,696 Non-Control/Non-Affiliate investments 573,164 354,042 2,254,373 1,421,787 Total interest from portfolio companies 1,973,479 1,673,235 7,727,949 5,979,355 Interest from other investments: Non-Control/Non-Affiliate investments 185 241 2,356 933 Total interest from other investments 185 241 2,356 933 Dividend and other investment income: Affiliate investments 13,125 86,125 52,500 506,076 Non-Control/Non-Affiliate investments — 129,250 242,760 531,055 Total dividend and other investment income 13,125 215,375 295,260 1,037,131 Fee income: Control investments 4,516 4,516 18,063 17,242 Affiliate investments 118,886 31,245 450,255 278,061 Non-Control/Non-Affiliate investments 27,272 5,507 65,402 25,441 Total fee income 150,674 41,268 533,720 320,744 Total investment income 2,137,463 1,930,119 8,559,285 7,338,163 Expenses: Base management fee 277,628 287,297 1,212,160 1,057,166 Income based incentive fees — — 178,218 — Capital gains incentive fees (1,054,000 ) 64,000 1,012,300 804,700 Interest expense 61,480 336,997 1,089,678 1,044,831 Professional fees 163,363 155,346 600,298 547,456 Stockholders and office operating 56,053 55,158 265,617 261,639 Directors' fees 66,550 65,709 263,500 263,500 Administrative fees 40,000 37,250 158,167 149,000 Insurance 10,467 10,380 44,358 44,100 Corporate development 2,173 1,660 12,986 5,927 Total expenses (376,286 ) 1,013,797 4,837,282 4,178,319 Net investment income before income taxes 2,513,749 916,322 3,722,003 3,159,844 Income tax expense (benefit), including excise taxes 298,097 (45,282 ) 296,926 192,111 Net investment income 2,215,652 961,604 3,425,077 2,967,733 Net realized gain (loss) on sales and dispositions of investments: Affiliate investments 16,582 (21,265 ) 6,165,419 2,574,829 Non-Control/Non-Affiliate investments — 3,440 4,959,445 (1,523,750 ) Net realized gain (loss) on sales and dispositions of investments, before income taxes 16,582 (17,825 ) 11,124,864 1,051,079 Income tax expense — 21,524 — 359,682 Net realized gain (loss) on sales and dispositions of investments 16,582 (39,349 ) 11,124,864 691,397 Net change in unrealized appreciation/depreciation on investments: Control investments (2,565,130 ) — (2,565,130 ) — Affiliate investments (2,195,837 ) 627,667 1,400,942 (259,031 ) Non-Control/Non-Affiliate investments (524,522 ) (289,938 ) (4,898,112 ) 3,231,115 Change in unrealized appreciation/depreciation before income taxes (5,285,489 ) 337,729 (6,062,300 ) 2,972,084 Deferred income tax (benefit) expense (107,197 ) 171,005 (339,971 ) 104,564 Net change in unrealized appreciation/depreciation on investments (5,178,292 ) 166,724 (5,722,329 ) 2,867,520 Net realized and unrealized (loss) gain on investments (5,161,710 ) 127,375 5,402,535 3,558,917 Net (decrease) increase in net assets from operations $ (2,946,058 ) $ 1,088,979 $ 8,827,612 $ 6,526,650 Weighted average shares outstanding 2,581,021 2,581,021 2,581,021 2,581,021 Basic and diluted net (decrease) increase in net assets from operations per share $ (1.14 ) $ 0.42 $ 3.42 $ 2.53 Rand Capital Corporation and Subsidiaries Consolidated Statements of Changes in Net Assets (Audited) 2024 2023 Net assets at beginning of year $ 60,815,213 $ 57,721,320 Net investment income 3,425,077 2,967,733 Net realized gain on sales and dispositions of investments 11,124,864 691,397 Net change in unrealized appreciation/depreciation on investments (5,722,329 ) 2,867,520 Net increase in net assets from operations 8,827,612 6,526,650 Declaration of dividends (12,982,536 ) (3,432,757 ) Stock dividends distributable 8,672,231 — Net assets at end of year $ 65,332,520 $ 60,815,213 Rand Capital Corporation and SubsidiariesReconciliation of GAAP Total Expense to Non-GAAP Adjusted Expenses(Unaudited) In addition to reporting total expenses, which is a U.S. generally accepted accounting principle ("GAAP") financial measure, Rand presents adjusted expenses, which is a non-GAAP financial measure. Adjusted expenses is defined as GAAP total expenses removing the effect of any (credits)/expenses for capital gains incentive fees accrual. GAAP total expenses is the most directly comparable GAAP financial measure. Rand believes that adjusted expenses provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023 Total expenses $ (376,286 ) $ 1,013,797 $ 4,837,282 $ 4,178,319 Exclude (credits)/expenses for capital gains incentive fees (1,054,000 ) 64,000 1,012,300 804,700 Adjusted total expenses $ 677,714 $ 949,797 $ 3,824,982 $ 3,373,619 Reconciliation of GAAP Net Investment Income per Share toAdjusted Net Investment Income per Share(Unaudited) In addition to reporting Net Investment Income per Share, which is a GAAP financial measure, the Company presents Adjusted Net Investment Income per Share, which is a non-GAAP financial measure. Adjusted Net Investment Income per Share is defined as GAAP Net Investment Income per Share removing the effect of any (credits)/expenses for capital gains incentive fees. GAAP Net Investment Income per Share is the most directly comparable GAAP financial measure. Rand believes that Adjusted Net Investment Income per Share provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023 Net investment income per share $ 0.86 $ 0.37 $ 1.33 $ 1.15 Exclude (credits)/expenses for capital gains incentive fees per share (0.41 ) 0.03 0.39 0.31 Adjusted net investment income per share $ 0.45 $ 0.40 $ 1.72 $ 1.46 View source version on Contacts Company: Daniel P. PenberthyPresident and CEO716.853.0802dpenberthy@ Investors: Deborah K. Pawlowski / Craig P. MychajlukAlliance Advisors IR716-843-3908 / 716-843-3832dpawlowski@ cmychajluk@ Sign in to access your portfolio
